Islamic finance has gained significant global exposure over the past decade and has evolved from an industry with a limited geographic reach to one that is now prevalent across key Islamic markets in the Middle East and Asia Pacific. Total global Islamic assets have witnessed phenomenal growth from $137 billion (Dh503.2 billion) in 1996 to $895 billion in 2010.
Assuming the current trajectory, total industry assets are likely to surpass $1 trillion by 2012……………………………………….Full Article: Source

Kazakhstan took a step closer to launching a $500mn-plus debut sovereign sukuk issue after the lower house of parliament passed amendments to the country’s Islamic finance laws, the finance minister has said. Bolat Zhamishev told Reuters the government would consider the size and timing of the issue after the Senate clears the regulation on Islamic financing, a process that he expects to be complete within a month.
“We are looking to issue Islamic bonds in order to fix a benchmark, but the prospects for this will depend on the market,” Zhamishev said. “We are not going to rush.”………………………………………Full Article: Source

Minister of Finance Mohammad Abu Hammour on Saturday called for intensifying efforts among Islamic states to achieve high-level cooperation and set up joint plans to address current economic challenges.
Deputising for His Majesty King Abdullah, Abu Hammour inaugurated the International Conference on Investment in Islamic States which opened yesterday in Amman……………………………………….Full Article: Source

The talk is big, but are potential sukuk originators walking the walk?
Depending on who you speak to, the picture is mixed, marked on the other hand by the “irrational” exuberance and ambition of potential issuers, many of whom do not get near to an offering, and on the other hand those who are skeptical and indifferent based on an erroneous belief that sukuk origination is always more expensive than conventional bonds and is further complicated by the Shariah compliance requirement……………………………………….Full Article: Source

Citi is offering special custody services to clients who are scheduled to receive sukuks as part of Nakheel’s creditor settlement programme. “We are keen to hear from all Nakheel creditors who require a custody services for the sukuks and we currently offer special assistance with custody account opening, documentation as well as competitive pricing,” said Richard Street, Head of Securities and Fund Services, Middle East.
“Investors will benefit from the local expertise and the globally-consistent services of Citi’s dedicated DCC experts; a dedicated team of specialists has been allocated to guide customers through the entire process.”………………………………………Full Article: Source

Kuwait Finance House Research Limited (KFHR) prepared a report on the Islamic Sukuk market. The report notes that the Sukuk market in month of April has been the lowest year to date. The following are the details of the report.
Sukuk issuance during the month of April declined to the lowest level since July 2010 with $4,862.6bn coming from the primary market. The month was dominated by sovereign issuers, particularly in Malaysia where the central bank contributed $3bn of the total sukuk for the month……………………………………….Full Article: Source

Bank Muamalat of Indonesia hopes to issue a global dollar denominated Sukuk worth between $50m and $100m before the end of the year.
Bank Muamalat is the second largest Islamic bank in Indonesia- as well as its oldest - and would use the funds to help implement its overseas expansion plans……………………………………….Full Article: Source

Islamic finance has been growing steadily on all fronts for two decades or more. Further opportunities for growth exist as standards and operations in the industry become more globalised. In particular, the demand for Sharia-compliant investment assets from conventional institutional investors.
The development of the Takaful market, which is under-penetrated. The further alignment of the global halal industry with Islamic finance and the ongoing development of Sharia-based liquidity management, risk management and hedging tools. ………………………………………Full Article: Source

Islamic Banking sector is currently handling about US$20 trillion with over 300 Islamic Banks in operations around the world.
Chairman of Islamic Bank Consultative Forum (IBCF) and Islami Bank Bangladesh Limited Abu Nasser M Abduz Zaher disclosed the figure while speaking at a press conference in the city Sunday……………………………………….Full Article: Source

Islamic Finance has been experiencing double digit growth globally and risk management has not been at the top of the agenda, but if Islamic banks are determined to play a greater role in the financial system they need to manage the risks involved.
With a quarter of the world’s population being Muslim, there is a growing desire by Muslims around the world to have their financial needs met with Shariah compliant solutions. Companies are also looking to diversify their investor base by seeking funding from Shariah-related sources. Islamic Finance in line with conventional finance is experiencing a return to growth post the financial crisis……………………………………….Full Article: Source

Oman has finally succumbed to the demand dynamics of Islamic banking, oft quoted even by central bankers and the World Bank Group, as the fastest growing component of the global financial system.
Earlier in May, Oman’s absolute ruler, Sultan Qaboos, issued a royal decree paving the way for the authorization of the country’s first standalone Islamic bank and for other interested banks to set up dedicated Islamic banking windows……………………………………….Full Article: Source

The Jeddah-based Islamic Development Bank (IDB) Group) is boosting its ties with Indonesia, the world’s most populous Muslim country, under its Member Country Partnership Strategy (MCPS), a new initiative launched by the IDB in 2010 to identify, target, allocate, implement and evaluate its financing more efficiently in member countries.
Thus far, already $3.5 billion have been allocated under this program to Indonesia for 2011-2014……………………………………….Full Article: Source

Mashreqbank’s new Islamic banking unit, poised to be launched in November, aims to win a five per cent share of the UAE’s fast-growing Islamic banking market in five years, its chief executive said.
Mubashar H. Khokhar told Gulf News the new Islamic bank has planned a string of new product launches, one every month, to win new customers especially from the under-served high net worth and mass affluent segments……………………………………….Full Article: Source

A major legal battle in the banking sector is on the way, no thanks to the new guideline on Non-Interest Financial Institutions (NIFI) by the Central Bank of Nigeria (CBN).
The guideline, which became operational on January 13, 2011, and signed by the Acting Director, Financial Policy and Regulation Department of the apex bank, Chris.O. Chukwu, introduced religion into Nigerian banking, contrary to the Banks and Other Financial Institutions Act 1991 (as amended)……………………………………….Full Article: Source

International Islamic (QIIB or Qatar International Islamic Bank) announced a bonanza in the form of a liberal lending product for those who transfer their salaries to the bank.
But the minimum monthly salary of a customer wanting to take advantage of the new scheme should be QR5,000. The new ‘lending product’ is available to both citizens and expatriates, the QIIB said……………………………………….Full Article: Source

Bank of London and The Middle East (BLME) has launched its Light Industrial Building Fund (LIBF), a Shari’ah-compliant UK real estate fund which invests in sustainable property assets.
The LIBF, which targets institutional investors, invests in carefully selected light industrial buildings across the UK. The target cash on cash yield is eight per cent to 10 per cent per annum, with quarterly cash dividends paid to investors. Target IRR (Internal Rate of Return) is 15 per cent for the five-year duration of this closed-ended fund……………………………………….Full Article: Source

Standard & Poor’s Ratings Services has assigned a preliminary ‘BBB+’ issue rating on Sukuk Trust Certificates to be issued 27 May 2011, by SIB Sukuk Company II Ltd., a special purpose company (SPC) with Sharjah Islamic Bank (SIB; BBB+/Stable/A-2) as the obligor and managing agent
The ‘BBB+’ rating on the sukuk trust certificates is based on the ‘BBB+’ long-term counterparty credit rating on SIB.
The rating on the five-year $400 million trust certificates reflects the irrevocable undertaking to purchase the assets held by the issuer at the redemption date of the Sukuk at a predefined price……………………………………….Full Article: Source

Abu Dhabi’s state-owned fund Mubadala now holds a majority 26.1 per cent stake in district cooling firm Tabreed after completion of a tender offer of shares to repay an Islamic bond due this month, Tabreed said on Sunday.
Mubadala and its wholly-owned subsidiary General investments previously held a 16.79 per cent stake in Tabreed, a company spokesman said……………………………………….Full Article: Source